Tourism interactions and redistribution effects in the Balearic Islands: A SAM analysis

© 2016, SAGE Publications Inc. All rights reserved. This paper presents new estimates of the weight of tourism in the Balearic Islands (BI) and examine the interactions among tourismoriented sectors and non-tourism sectors. It also estimates the redistributive effects caused by tourism sectors. The results are obtained for three alternative linear models whose numerical specification relies on a new social accounting matrix (SAM) of the BI constructed by the authors for 2004. This SAM is more ambitious than previous matrices. It is a 62 square matrix built on the information provided by the latest input-output table available, the regional accounts and other statistical information of the BI government and the Continuous Consumers’ Expenditure Survey. It includes 35 production activities and 5 representative households. The results of the models confirm the key role of tourism in the BI economy. They also indicate that the more encompassing models provide a fairer picture of the effects of tourism.